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‘Asset Prices in a Single-period Model’ derives asset prices in a one-period model. The authors derive a version of the Capital Asset Pricing Model (CAPM) using a complete market, state-contingent claims approach. They define the forward pricing kernel and then use the assumption of joint normality of the cash flows and Stein's lemma to establish the CAPM. They then derive the pricing kernel in an equilibrium representative investor model.

‘Asset Prices in a Single-period Model’ derives asset prices in a one-period model. The authors derive a version of the Capital Asset Pricing Model (CAPM) using a complete market, state-contingent claims approach. They define the forward pricing kernel and then use the assumption of joint normality of the cash flows and Stein's lemma to establish the CAPM. They then derive the pricing kernel in an equilibrium representative investor model.